THE GREAT DEPRESSION 1929 1940
THE GREAT DEPRESSION
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
Only very wealthy people invested in the Stock Market
|
|
|
People distrusted the stock market as a way to make money
|
|
|
People panicked and began selling their stocks when economists warned people
|
|
|
Stock prices were at an all-time high and no one wanted to sell
|
Detailed explanation-1: -Low wages, debt multiplication, a faltering agricultural sector, and an excess of huge bank loans that could not be liquidated were among the other major factors of the stock market crash of 1929.
Detailed explanation-2: -The main cause of the Wall Street crash of 1929 was the long period of speculation that preceded it, during which millions of people invested their savings or borrowed money to buy stocks, pushing prices to unsustainable levels.
Detailed explanation-3: -By then, production had already declined and unemployment had risen, leaving stocks in great excess of their real value. Among the other causes of the stock market crash of 1929 were low wages, the proliferation of debt, a struggling agricultural sector and an excess of large bank loans that could not be liquidated.
Detailed explanation-4: -On October 29, 1929, “Black Tuesday” hit Wall Street as investors traded some 16 million shares on the New York Stock Exchange in a single day. Billions of dollars were lost, wiping out thousands of investors. The panic selling reached its peak with some stocks having no buyers at any price.